Monetary statements provide data on how the business is operating financially and why. Making certain financial statements are produced recurrently will present information for continuous improvement of business operations. b. This may explain the lower turnover and better average collection period. The December accounts receivable steadiness of $300,000 might not be an excellent measure of the typical accounts receivable, thereby inflicting the calculated average assortment interval to be overstated. It also suggests the November figure (zero-30 days overdue) isn’t a cause for great concern. Nevertheless, 13 p.c of all accounts receivable (those arising in July, August and September) are sixty days or more overdue and could also be an indication of poor receivables management.
Comply with 30 day Rule: You received your salary and needed to purchase groceries for month. Buy groceries for the month after which make sure you do not purchase any product. It is a golden rule … Read More